MW Global oil prices drop below $108 a barrel after Trump reaffirms he would end the war in Iran 'very quickly'; Hormuz sees increased tanker traffic
By Isabel Wang and Nora Redmond
Brent and WTI contracts are still within 'easy reach' of recent highs, says one analyst
President Donald Trump said at the annual congressional picnic that the war in Iran would end "very quickly."
Oil futures were sliding on Wednesday following comments from President Donald Trump that the war in Iran would be ended "very quickly," but investors remained uncertain about the potential for de-escalation.
West Texas Intermediate crude saw its most-active July contract (CL.1) (CLN26) fall 2.8% to $101.30 a barrel, while Brent crude futures for July delivery (BRN00) (BRNN26) were off 3.3% to $107.95 a barrel, according to FactSet data.
"We're going to end that war very quickly. They want to make a deal so badly, they're tired of - this should have happened for 47 years," Trump told a group of Congress members at the White House's annual congressional picnic on Tuesday.
"Somebody should have done something about it. And it's going to happen, and it's going to happen fast. And you're going to see oil prices plummet," the president added.
On Tuesday, two Chinese tankers carrying crude oil traversed the Strait of Hormuz. Another, a South Korean vessel, was passing through it, according to a Reuters report. Jim Reid, of Deutsche Bank, noted that this marks "one of the busiest days since the closure."
"This morning's modest pullback in oil prices came after President Trump insisted that the war with Iran will end 'very quickly,'" said David Morrison, senior market analyst at Trade Nation. "Yet investors continue to hedge their bets with Brent and WTI front-month contracts within easy reach of recent highs."
"There's still plenty of uncertainty over what happens next, particularly after Trump stated Tuesday that the U.S. may need to deliver another major strike against Iran if a deal is not reached soon," Morrison told MarketWatch in emailed commentary on Tuesday.
Iran's Revolutionary Guards also warned on Wednesday that any renewed strikes on Iran could expand the war beyond the region. The IRGC also said it had not used all its capacities against the U.S. and Israel, while warning that their "devastating blows will crush" the adversaries, the IRGC said in a statement on its Sepah News website.
On Monday, U.S. Treasury Secretary Scott Bessent announced an additional 30-day extension to waive sanctions and allow certain countries to purchase Russian oil and petroleum products that are already at sea.
"This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed," Bessent wrote in a post on X. "This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries."
The countries affected by the extension haven't yet been announced by the White House.
Meanwhile, the U.K. has also eased its sanctions, with a trade waiver allowing the importation of Russian oil refined into diesel and jet fuel in third countries. Just on Tuesday, it signed a Group of Seven statement reiterating its "unwavering commitment" to impose "severe costs" on Russia, following the country's invasion of Ukraine in 2022.
Airlines throughout the U.K. and the rest of the world have canceled flights and increased the cost of luggage as the continued closure of the passage has driven up jet fuel prices.
-Isabel Wang -Nora Redmond
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May 20, 2026 08:59 ET (12:59 GMT)
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